There has been a lot of discussion recently about changes within government agencies and how they might affect the average American. One popular topic is the Department of Government Efficiency (DOGE) and its efforts to access certain types of data, including tax records, Social Security data, and the Treasury Department payment system. But what does it all mean? Should you be concerned about data security and privacy? Policy debates aside, protecting your financial data and personal information is always a good practice. Identity theft is a growing issue in the U.S., making it more important than ever to take simple, proactive steps to safeguard your financial information.
What Financial Data to Prioritize and How to Protect It
1. Implement a Credit Freeze
A credit freeze blocks access to your credit report, making it harder for identity thieves to open new accounts in your name. Experts often suggest a credit freeze if you’ve been a victim of identity theft, but it’s also a great tool when you want extra protection against fraud. It costs nothing and won’t affect your credit score or current accounts, but lenders won’t be able to check your credit until you lift the freeze. Here’s what to know:
- To set up a credit freeze, contact each of the three major credit bureaus—Equifax, Experian, and TransUnion—online or by phone and be prepared to verify your identity.
- You can lift or temporarily remove the freeze anytime when applying for new credit.
- A credit freeze limits access to your credit reports, but it doesn’t block access completely. You can still access your own records and get free weekly credit reports.
2. Obtain Regular Credit Reports
Gone are the days when you could get just one copy of your credit report each year. Now, you’re allowed free weekly credit reports from each of the three big credit bureaus—Experian, Equifax, and TransUnion. However, if you have a credit freeze in place, a quarterly credit report check is probably enough. If you don’t have a credit freeze in place, check your credit report monthly. Here’s what to look for:
- Personal Information. Make sure your name, address, and Social Security number are correct.
- Accounts. Check that all listed accounts are yours and that the balances are accurate.
- Payment History. Look for any late or missed payments you don’t recognize.
- Credit Inquiries. Make sure there are no unauthorized credit checks from lenders you didn’t apply with.
- Public Records. Watch for bankruptcies, liens, or judgments that don’t belong to you.
- Signs of Fraud. Look for unfamiliar accounts, loans, or activities that could indicate identity theft.
2. Monitor Your Social Security Benefits
Your Social Security statement (which is available online) gives you a personalized estimate of how much you’ll receive from Social Security if you retire or become disabled. Make a habit of reviewing your statement at least once a year. To not only watch for fraud but also to check for errors and maximize your monthly payout. Here’s what to do:
- Create a “My Social Security” account: If you don’t already have an online account, you can create one through the SSA website. From there, if you prefer, you can also request a paper statement.
- Check for errors: Verify that your work history and earnings are accurately recorded to prevent discrepancies that could impact your benefit amount.
- Check your credits: Social Security credits are a way to measure how long you’ve worked and paid taxes and whether you qualify for Social Security benefits. You can earn up to four credits per year and must earn at least 40 SS credits to qualify for benefits.
- Review survivor benefits: Your family may be eligible to collect survivor benefits on your account if you die. So, look for information about how much your family may be eligible for if you should pass. You should also verify who is considered eligible for survivor benefits based on your work history, including your spouse, ex-spouse (if applicable), and dependent children.
- Take action: If you find any discrepancies, act immediately by contacting the Social Security Administration. Don’t delay because the process is time-consuming, and you may need to provide proof in the form of a W-2, tax return, pay stub, or other documents.
Also, don’t carry your Social Security card with you. Keep it at home in a safe, fireproof place, and be careful about who you give your number to. If you get paper Social Security statements, shred them before throwing them away.
3. Review Your Bank, Credit Card, and Investment Records
We all get those bank, credit card, and investment statements (either electronically or in the mail), but many of us don’t look very closely—if we look at them at all. Reviewing your financial statements regularly helps you catch errors, prevent fraud, and stay on top of your money. Here’s what to look for in each:
- Bank statements. Look at your history of deposits and withdrawals to make sure they match your records. Watch for duplicate charges, unauthorized transactions, and unexpected fees.
- Credit card statements. Review all charges for purchases you don’t recognize, signs of fraud, or billing errors. Check your interest rate and make sure any payments you made were applied correctly.
- Investment account statements. Confirm that your account balance, contributions, and withdrawals match your records. Look for unexpected fees or changes in your investment allocations that you didn’t authorize.
You can always find electronic statements for your Maps accounts in mobile or online banking. Or, if you prefer hard copies, keep a year’s worth of statements in a secure, fireproof location. Shred any statements or documents you don’t need.
4. Read Your Mortgage Statements
Your mortgage statement provides valuable information about your home loan. So, getting yourself acquainted with it each billing cycle can help you avoid unnecessary expenses or mishaps. Here are some key points to check:
- Basic information. Make sure your property address, mailing address, lender details, and current interest rate are accurate.
- Payment details. Look at the total amount due, including the principal, interest, escrow, and fees.
- Payment breakdown. Make sure your payments are being applied correctly. As your loan progresses, more of each payment goes toward your principal, and less goes toward interest. However, if you are making extra payments, you may need to specify that you want those payments to go toward the principal and not the interest.
- Escrow balance. If you have an escrow account, check to see that it is adequately funded for property taxes and insurance.
- Transaction history. Review your recent payments, check the fees, and look for any adjustments made to your loan.
- Loan progress. If you hope to pay off your mortgage earlier than expected, you may need to notify your servicer to avoid any unexpected fees. especially if you want any extra payments you make to apply to your principal balance.
Mortgage documents, like the promissory note, deed of trust, and proof of title insurance, should be kept for the life of the loan. So, invest in a fireproof, waterproof safe for your home or a safe deposit box at your bank or credit union. It’s also wise to keep electronic duplicates in a secure cloud-based platform or external hard drive for easy referral. When it comes to statements, keep a digital copy of your most recent mortgage statement handy to refer to when your next statement comes. Then, be sure to shred any sensitive documents you no longer need.
5. Implement Secure Backup Solutions
Protecting yourself against identity theft also means being vigilant about protecting your sensitive data. That includes personal files, financial records, passwords, photos, and any other digital information that could identify you. It’s not enough to simply shred your mail and paperwork. You have to get a little tech-savvy to stay safe. Here are some smart steps to take:
- Use Strong Encryption. Encryption is the digital armor that protects your data online. Use it and other available security tools to scramble your information so that only you (or the people you allow) can access it.
- Maintain Multiple Backup Copies. Follow the 3-2-1 rule—keep three copies of your data, store them in two different ways (like on an external hard drive and an online storage service), and keep one copy in a separate location in case of emergencies.
- Keep Your Backup System Up to Date. If you use a program or device to automatically back up your files, make sure it’s updated regularly so it works properly and stays secure.
- Secure Physical Backup Locations. If you save copies on a USB drive, external hard drive, or other physical device, keep them in a secure spot—like a fireproof safe or another safe location away from home—to protect them from theft, fire, or other disasters.
These steps help ensure that if something happens to your computer or phone—like a crash, theft, or cyberattack—you can still access your important information.
Staying One Step Ahead
While policies and regulations regarding data privacy may shift, one thing remains constant: your financial information is valuable—and not just to you. Cybercriminals, scammers, and even simple clerical errors can put your identity, credit, and hard-earned money at risk.
The good news? You don’t have to be an expert in cybersecurity or financial law to protect yourself. Small, intentional habits—like checking your credit report, securing backups, and reviewing financial statements—can go a long way in keeping your data safe. Think of these steps as part of your regular financial routine, just like budgeting or saving for a big goal. Ultimately, protecting your financial data isn’t just about avoiding fraud—it’s about maintaining control over your own future. By taking proactive steps today, you ensure that your financial security stays exactly where it belongs: in your hands.